COFTS 



165 



If we assume that the plant is in operation 250 days per year, 

 the fixed charge is $8.00 per day. Continuous operation requires 

 that a good business has been established, that ample capital is 

 available to carry a large amount of pipe in the stackyard during 

 the winter seasons, and that it is not necessary to move the machin- 

 ery from place to place. 



The total cost given in Table XXIV does not include any ofifice 

 expenses, or the cost of a traveling salesman or the cost of collec- 

 tions. When expenses of this nature and a good working profit are 

 added, the pipe should sell at about 22 to 25 cents per foot for the 

 12-inch size, and 45 to 55 cents for the 20-inch size. No allowance 

 has been made for the cost of water supply for the plant. This item 

 is usually negligible. The allowance for contingencies is ten per- 

 cent. 



The cost of hand-tamped pipe is necessarily higher than that 

 of McCracken pipe, since the rate of making is only about one- 

 seventh as fast. If we assume an investment of $1500 in equip- 

 ment, the fixed charges will be only $2 per day, but the fixed charges 

 per foot of pipe will be twice as great as for the machine pipe. The 

 labor cost will be three times as great. Sand and cement are likely 

 to cost more for the hand-tamped pipe. 



There is an advantage in a permanently-installed, centrally- 

 located plant, especially for the engine-driven machine plants. The 

 plant should be situated close to an abundant supply of good sand 

 and on a railroad spur. Unless the cost of transportation from the 

 plant to the point of use exceeds 25 percent of the cost at the plant, 

 it will be more economical usually to buy the machine pipe than to 

 make the pipe on the ground by hand tamping. 



The contracts made at Continental in 1916 were of an unusual 

 character. The company preferred to furnish both sand and ce- 

 ment, so as to have control of the quality of each and of the propor- 

 tions of the mortar. The contractors furnished the equipment. All 

 hauling was done by the company. Sixteen-inch pipe will be taken 



